New laws open federal money to more students

THIBODAUX — New rules expanding a federal college-grant program have increased the number of students applying for summer financial aid.

Daniel McBrideStaff Writer

THIBODAUX — New rules expanding a federal college-grant program have increased the number of students applying for summer financial aid.The Pell Grant Program offers money to help low-income students pay for higher education. Typically grants were not available to help pay for summer classes because of the way they're awarded, but a 2008 federal law changed that beginning this summer.“Eligible students who enrolled full-time for a fall semester and full-time for a spring semester received all of their scheduled awards at once,” according to Nicholls spokesman Graham Harvey. “There was no remaining Pell Grant eligibility to attend a summer session.”But the Higher Education Opportunity Act of 2008 opened the door for up to two grants within one year, meaning students can now use the money to pay for summer courses.The exact number of recipients at Nicholls won't be known until the end of the year, said Nicholls Financial Aid Director Casie Triche, though the number of students applying for summer financial aid has increased.To qualify for the summer grant money, students must be Pell Grant-eligible this year and enrolled in at least six hours total during Nicholls' summer sessions.Other changes to the program passed by Congress in late March will take effect in fall 2010. But the effects of those changes have already begun to trickle down to students, Triche said.As part of the contentious Health Care and Education Reconciliation Act of 2010, signed into law March 30 by President Barack Obama, the Pell Grant program was expanded. The maximum award will increase during the next decade, from $5,550 in 2010-11 to $5,975 by 2017. Eligibility standards were also relaxed, meaning students of families with income of up to $50,000 may be eligible, an increase from previous standards that allowed only applicants from families making $20,000 or less.Another federal program that provides cheap loans to college students is changing to help cover increased Pell Grant costs. So-called Federal Family Education Loans are now provided by private banks with the backing of the government, but the new law changes that to make them loans directly from the federal government. Cutting out the middleman, administration officials contend, will save money in banking fees and overhead costs.This move is aimed to save money so that despite the Pell Grant program's expansion, the Congressional Budget Office estimates the changes will save $61 billion during the next 10 years.“The change to direct lending was essential for us to provide more effective and efficient service to our students,” Triche said. “Of course, any increase in Pell Grant funds is always beneficial to those striving to get higher education.”Applications for federal financial aid are due June 30. For information about financial aid at Nicholls, visit www.nicholls/edu/finaid/forms or call 448-4048.

Staff Writer Daniel McBride can be reached at 448-7635 or daniel.mcbride@houmatoday.com. Follow him on Twitter @BayouSchools. The Associated Press contributed to this report.